The Climate and Resiliency (EX) Task Force is organized around five workstreams. The workstreams are broken out by tab below to showcase the activities and topics covered under each group.
The Pre-Disaster Mitigation Workstream serves to accomplish the following:
- Participate in multi-agency/stakeholder educational efforts on coverage gaps and pre-disaster mitigation related to climate risks.
- Incentivize insurer recognition of enhanced building codes in underwriting and rating.
- Continue consumer education and awareness on coverage gap and pre-disaster mitigation related to climate risks and natural catastrophe exposure, including possible strategic partnerships.
MEETING RECORDINGS
The Workstream co-hosted a building code and mitigation workshop on March 17, 18 and 19 in conjunction with CIPR and the Federal Alliance for Safe Homes (FLASH).
The slides and recorded sessions are available here:
Day One: Focus on Building Codes
Slides | Recording
RESOURCES
Center for Insurance Policy & Research State Resiliency Map - this page provides links to resources within each State Department of Insurance including disaster risk management and peril-specific information.
NAIC and Federal Resources on Resiliency, Disaster Preparedness and Response - this page provides links to pertinent information created by the NAIC as well as Federal Agencies.
International Code Council (ICC)
ICC develops model standards for building codes. They provide a family of codes for various uses including, not limited to, building (IBC), residential (IRC), energy, and Wildland Urban Interface Code (WUI). To learn more about the family of codes or the 3 year development lifecycle visit: https://www.iccsafe.org/products-and-services/i-codes/the-i-codes/.
To learn more about the codes in your state visit: https://codeadoptions.iccsafe.org/.
Federal Emergency Management Agency (FEMA)
"Building Codes Save: A Nationwide Study of Loss Prevention," November 2020. The study shows that modern building codes lead to major reduction in property losses from natural disasters.
| Findings of Modeled I-Code Savings | Number of Post-200 Structures | Money Saved, annual average |
| Floods | 786k | $484 million |
| Earthquakes | 2.4m | $60 million |
| Hurricane Winds | 9.2m | $1.1 billion |
https://www.fema.gov/emergency-managers/risk-management/building-scienc…
National Institute of Building Sciences (NIBS)
NIBS Mitigation Saves: 2019 Report. Report findings show:
Adopting model codes save $11 per $1 spent.
Exceeding codes save $4 per $1 spent.http://2021.nibs.org/files/pdfs/NIBS_MMC_MitigationSaves_2019.pdf
Consumer Information
A took for consumers to lookup the building codes used in their location:
www.Inspect2Protect.org
Industry Information
ISO National Building Code Assessment Report, Building Code Effectiveness Grading Schedule (2019 Edition). Through the BCEGS program, ISO assesses the building codes in effect in individual communities and how those communities enforce their building codes.
https://www.isomitigation.com/siteassets/downloads/iso-bcegs-state-repo…
FEMA Hazard Mitigation Assistance Division 2020 Year in Review, 2020.
The report provides a list of federal funding programs, tools and resources and success stories for the programs use in 2020.
https://www.fema.gov/sites/default/files/documents/fema_hma-2020-year-i…
FEMA Mitigation Planning Success Stories
https://fema.maps.arcgis.com/apps/Shortlist/index.html?appid=d50f03a118…
National Institute of Building Sciences (NIBS)
NIBS Mitigation Saves: 2019 Report. Report findings show:
Federal mitigation grants save $6 per $1 spent.
Private sector building retrofit saves $4 per $1 spent.
Mitigating infrastructure saves $4 per $1 spent.
https://cdn.ymaws.com/www.nibs.org/resource/resmgr/reports/mitigation_s…
National Institute of Building Sciences (NIBS)
A Roadmap to Resilience, August 2020. The report spells out concrete incentives that reduce owner costs to make new and existing infrastructure more disaster resilient. Incentives include mortgage discounts, insurance premium discounts, tax incentives, grants, and other inducements. This roadmap was developed by the Multi-Hazard Mitigation Council of the National Institute of Building Sciences.
https://www.nibs.org/reports/roadmap-resilience-incentivization
State Regulator Policy Avenues and Resiliency Playbook (NAIC)
Provides research and a framework for funding resiliency through grants and incentives. Includes a list of state actions regarding resiliency programs, insurance rate reduction and premium discounts.
https://content.naic.org/sites/default/files/inline-files/Resiliency%20…
Consumer Information
Community Resilience Planning
https://www.nist.gov/community-resilience
Protect your home checklist
https://flash.org/protect.php
IBHS Preparedness Tips to Protect Homes and Businesses from Many Perils
https://disastersafety.org/
NAIC Consumer Resources
https://content.naic.org/consumer.htm
The Solvency Workstream serves to accomplish the following:
- Recommend enhancements to regulator solvency tools, including a risk framework for addressing wildfires and flood within the property/casualty (P/C) risk-based capital (RBC) formula, modifications to the Own Risk and Solvency Assessment (ORSA), the Financial Analysis Handbook and the Financial Condition Examiners Handbook. Develop climate risk stress tests and scenario analysis to evaluate potential financial exposure to both the physical and transition impacts of climate change. Provide scenarios, assumptions, and parameters for the stress testing exercise.
- Determine methodology for quantifying insurers' exposure to climate-related investments.
MEETING RECORDINGS
No Recording at this Time.
The Climate Risk Disclosure Workstream serves to accomplish the following:
- Consider modifications to the Climate Risk Disclosure to align with Task Force on Climate-related Financial Disclosures (TCFD) and promote uniformity in reporting requirements.
NOTICES:
The Climate Risk Disclosure Workstream of the Climate and Resiliency (EX) Task Force requested comments on its guiding questions to determine objectives of NAIC Climate Risk Disclosures. Responses received by comment letter and a compilation of all responses received are below:
MEETING RECORDINGS
The workstream met to 1) hear the history and administration/collection process of the NAIC Climate Risk Disclosure Survey, 2) hear a presentation regarding the CIPR's report Assessing NAIC climate risk disclosure data, and 3) hear a presentation regarding phase 1 of the American Academy of Actuary's research on the NAIC Climate Risk Disclosure Survey.
Webex Recording: Climate Disclosure Work Stream-20210127
Materials
The workstream met to 1) hear a presentation from Principles for Responsible Investment's climate reporting framework, and 2) hear a presentation on the CDP's Climate Disclosures and Related Analytics.
Webex Recording: Climate Disclosure Work Stream-20210203
Materials
The workstream met to 1) hear a presentation from CERES regarding climate risk disclosure insurance recommendations, 2) hear a presentation on Zurich's climate risk disclosure process and preference, and 3) hear a presentation on AIG's climate risk disclosure process and preference.
Webex Recording: Climate Disclosure Work Stream-20210217
Materials
The workstream met to 1) hear a presentation from RBC Global Asset Management Inc. regarding use of climate disclosures, 2) hear a presentation from Sustainalytics regarding their perspective of the information received through the NAIC Climate Risk Disclosure Survey, and 3) discuss questions being contemplated by the workstream to inform their future recommendations to the Task Force. Unable to share webex recording due to presenter legal constraints.
Materials
RESOURCES
The Innovation Workstream serves to accomplish the following:
- Discuss the use of innovative insurance products that respond to climate-related risks.
MEETING RECORDINGS
July 21, 2021 Innovation Workstream Meeting
Presentations from Bermuda Monetary Authority, Nephila Capital and Renaissance Re
https://naic.webex.com/webappng/sites/naic/recording/2543d2cfcc8c1039b6fb0050568f2603/playback
June 3, 2021 Innovation Workstream Meeting
Presentation from Global Parametrics
https://naic.webex.com/webappng/sites/naic/recording/d99f9795a6cb10398c…
May 10 Innovation Workstream Meeting
Presentation from First Company of Hawaii
https://naic.webex.com/webappng/sites/naic/recording/43086edc93ef1039b6…
March 25 Innovation Workstream Meeting
Presentation from Professional Solutions Insurance Company
https://naic.webex.com/webappng/sites/naic/recording/a62a31b53be7489fa1…
RESOURCES
The CIPR has a key issue page on parametric disaster insurance which includes a history of the product, it's use insuring against natural disasters, a summary of the benefits and concerns as well as links to several scholarly articles.
https://content.naic.org/cipr_topics/topic_parametric_disaster_insuranc…
The A2ii is the implementation arm of the International Association of Insurance Supervisors (IAIS) on Inclusive Insurance generating and disseminating knowledge, building capacity, contributing to IAIS standard-setting, they foster learning and dialogue, support implementation at the regional and national levels, and participate in global advocacy processes. A2ii has developed several reports and issues papers on parametric/index-based insurance which can be found here: https://www.a2ii.org/en/knowledge-center/index-insurance.
March 25, A2ii hosted a webinar regarding index-based insurance. The webinar reviews the results of a survey conducted by A2ii collecting information from supervisors and other stakeholders on the current state of index insurance. The webinar can be viewed here: https://www.youtube.com/watch?v=04HSYqJKWgU
The report including survey results can be found here: https://a2ii.org/en/knowledge-center/....
The Office of the Commissioner of Insurance of Puerto Rico adopted Rule Number 103, entitled "Requirements for Submitting and Processing Parametric Catastrophic Microinsurance in Personal Lines."
http://ocs.gobierno.pr/enocspr/files/Regla%20103_9185%20(English).pdf&n…;
This Rule is adopted for the purpose of establishing the regulatory scheme for microinsurance products that are directed at providing coverage for catastrophic risk in personal lines to foster access for all economic sectors in Puerto Rico to insurance coverage with low-cost premiums. This Rule is intended to provide a financial protection tool for persons who otherwise could not purchase traditional insurance. The primary purpose of microinsurance is to create an inclusive financial protection system that will encourage the development of private insurance products that are accessible to the low-income population.
The Technology Workstream serves to accomplish the following:
- Apply technology, such as early warning systems and predictive modeling tools, to understand and evaluate climate risk exposures.
MEETING RECORDINGS
No Recording at This Time.